FY22_29606 Stratasys JA_Redacted.pdf

Brand Name/Sole Source Justification under $250K

PMD Number: FY22-29606

Department: A (Code A65)

Company Name/Brand: Stratasys

Description of Product, Supplies or Services required to meet the agency’s needs:

The Engineering Development Lab (EDL) currently operates a Stratasys (OEM) 360MC and 450MC 3D printer for designing replacement parts needed by AEGIS fleet programs. The Emerald Care 360MC and 450MC (OEM provided service contract) support and maintenance service ensures that the 360MC and 450MC are functional and assists in repairs and routine maintenance. The Service Contract specifically provides: On-Site technician support, phone support, spare and replacement parts, and upgraded hardware.

Identification of Justification Rational:

☒ The Material or service must be compatible will aspects (Form, Fit, and Function) with existing systems presently installed.

☒ A patent, copyright, proprietary data, or licensing agreement limits competition.

☐ These are “direct replacement(s)” parts/components for existing equipment.

☐ Urgency.

Identification of the Justification Rationale Explained: **If using form, fit, and function, describe the current equipment and how the new item/service must coordinate or interface.

**If using patent, copyright, proprietary data, describe the proprietary data. **If using direct replacement, describe this below.

EDL currently operates a Stratasys 360MC and 450MC 3D printer to engineer and design conceptual and functional parts needed to support the fleet. In order to ensure that the EDL can continue these required capabilities without complications due to equipment failure or malfunctions, the EDL requires hardware maintenance and support for its existing Stratasys 360MC and 450MC 3D printer via a Service Contract. The Emerald Care 360MC and 450MC service contract is only compatible through the manufacturer, Stratasys. The 360MC and 450MC system and hardware are proprietary to Stratasys and Stratasys does not provide licenses to third-party vendors to service the proprietary software or hardware. Therefore, only Stratasys can conduct licensed software, certified hardware, material license and Field Change Order (FCO) maintenance on the 3D printer.

Specific Characteristics of the Item or Service required that Limit the Availability to a Sole Source or Brand Name: **This is the most important section. Explain in detail why this company or brand are the only ones that can meet the requirement.

As stated, only Stratasys can provide the required Emerald Care Service Contract required to ensure hardware expertise and proper maintenance is being conducted on the Stratasys 360MC and 450MC 3D printers currently operated by the EDL. If the EDL were to use another source to conduct the maintenance service on the Stratasys 360MC and 450MC 3D printer, the material, software, and hardware warranties existing for the machines would be effectively voided and would require the EDL to utilize another 3D printer. Switching to another 3D printer would cost an estimated amount of $650k based on the prior amount it cost to procure printers that met our requirements. This substantial duplication of cost is not expected to be recovered through competition. Further, even if EDL were able to utilize another vendor to service the current Stratasys 360MC and 450MC 3D printer, there would still be a substantial duplication of cost of an estimated $30k that is not expected to be recovered through competition and a delay of approximately 1 year. This estimate of cost and delay is based off of the prior efforts it took to research, identify, investigate, audit, evaluate, and validate service providers. A delay of approximately 1 year would be unreasonable since the EDL would be halted from providing support to the Fleet due to Stratasys 360MC and 450MC 3D printer equipment failure or malfunctions that will occur without required maintenance.

Market Research Conducted:

Haystack, GSA Advantage, AbilityOne, FedMall, UNICOR were checked with no vendors offering this required maintenance service.

Statement of Actions, if any to Remove Barriers to Competition in the Future:

NSWC PHD Contracts Office will continue to conduct market research as warranted to provide a broader vendor base as applicable for the types of supplies/services covered by this document. If another potential source emerges, NSWC PHD will assess whether competition for future requirements is feasible.

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

WYNN.ARTHUR.P.JR.10804808

Contracting Officer Signature:

Digitally signed by

WYNN.ARTHUR.P.JR.1080480870

Date: 2022.04.21 10:20:44 -07'00'

Signature Print Name, Title and Code Phone No. Date

Legal Counsel:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

SURANE.JULIANNE.MA

RIE.1522887796

Legal Office:

Digitally signed by

SURANE.JULIANNE.MARIE.1522887796

Date: 2022.04.21 10:51:14 -07'00'

Julianne Surane, Assistant Counsel Phone No. 805-228-8520 Date